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Tag: FY18

Private life insurers better claim payout ratio to 95% in FY18

Private life insurers better claim payout ratio to 95% in FY18

Finance
BENGALURU: The life insurance industry is honouring more claims, helped by technology and better fraud management. The claims payout ratio has improved significantly, with private industry paying 95.2% of all claims in 2017-18, compared to 93.7% in the previous year, and 88.3% in 2014-15. LIC has long been paying over 98% of its claims. That continues, though it slipped marginally in 2017-18. In fiscal 2018, 21 of 23 private life insurers paid more than 90% of claims, unlike in 2014-15, when only nine did so and the majority paid out only 50-70% of claims. Claims repudiation (those rejected) by private players is also down to just under 4%, from 4.6%. Fraud management, tech, regulation help cut rejections Among the reasons for this improvement, insurers say, is that they have adopted bette...
EPFO may pump in Rs 250-300 billion in equities during FY18

EPFO may pump in Rs 250-300 billion in equities during FY18

Finance
MUMBAI: Emerging as a significant source of investments into capital markets, Employees Provident Fund Organisation (EPFO) is likely to pump in Rs 250-300 billion in equities in 2017-18 with Rs 57 billion already invested this year so far, says a report. According to global brokerage Morgan Stanley, besides EPFO, the National Pension Scheme (NPS) is also among the sources for driving the domestic flow surge, which has been positive for the past 17 months. "NPS' pension assets stood at $ 30 billion at the end of July. We estimate their equity assets to be at USD 3.5 billion," the report said. The report noted that EPFO, which has raised its equity allocation to 15 per cent in the current fiscal from 10 per cent in 2016-17, is "likely to invest Rs 250-300 billion in equities in 2017-18 ...